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Review of the Building and Construction Security of Payment Act 2009

Review of the Retail and Commercial Leases Act 1995 and the Building and Construction Industry Security of Payment Act 2009

The State Government announced it intends to make amendments to the Retail and Commercial Leases Act 1995 and the Building and Construction Industry Security of Payment Act 2009.

The changes were announced by the Minister for Small Business Hon. Martin Hamilton-Smith MP and his media release can be found here.

Building and Construction Industry Security of Payment (Review) Amendment Bill 2017

Building and Construction Industry Security of Payment (Review) Amendment Bill 2017 Second Reading Speech

Retail and Commercial Leases (Miscellaneous) Amendment Bill 2017

Retail and Commercial Leases (Miscellaneous) Amendment Bill 2017 Second Reading Speech

Both bills were introduced into the Lower House of State Parliament on Wednesday 5 July 2017

  

Background

The State Government has launched the next stage of a program to improve payments to subcontractors in the building industry with the release of a series of proposed changes for consultation.  

Minister for Small Business, Martin Hamilton-Smith, has asked the Small Business Commissioner, John Chapman, to coordinate submissions on proposed changes to the Building and Construction Industry Security of Payment Act 2009 (the Act) and other initiatives to improve payment to subcontractors in the building and construction industry.  

The Consultation Paper details the Small Business Commissioner’s recommendations to the State Government, which include that of the review of the Act undertaken by Retired District Court Judge Alan Moss. This review was tabled in both Houses of Parliament on 12 May 2015.  

The proposed changes are set out in a three stage approach. It is anticipated that the expeditious implementation of stage one will result in a significant improvement in the operation of the Act and principal contractor behaviour. A heavier regulatory approach could be implemented by the Government under stage two, and possibly stage three, if the changes made under stage one fail to improve conduct in the industry and payment to subcontractors.  

The consultation period closed on 19 August 2016.

The Small Business Commissioner has reviewed the submissions and forwarded a report to the Minister for Small Business.

Submissions received are listed below, unless confidentiality has been requested.

The Moss Review can be found here, the Consulation Paper can be found here and the Building and Construction Security of Payment Act 2009 and Regulations can be found here.

View the Ministers News Release dated 17 June 2016 here

 

SUBMISSIONS RECEIVED

Samer Skaik

Nick Anderson

Basetec Services Pty Ltd

Colin Fullerton

Thomas Uher

Business SA

Housing Industry Association

Civil Contractors Federation

Nominator

Philip Martin

Subcontractors Alliance

Australian Mediation Association

Max Tonkin

Integrated Engineering Systems Pty Ltd

Law Society of South Australia

RICS DRS

Richard Poiner

Australian Institute of Building

Brett Wilson

Resolution Institute

Masonry Contractors Australia Ltd

Society of Construction Law Australia Ltd

SA Water

Perth Mediation Chamber

CCS Legal

Master Builders South Australia

Master Plumbers of South Australia

NECA SA

Doron Rivlin

Thomas Jones

Air Conditioning & Mechanical Contractors Association of SA

Department of Planning, Transport and Infrastructure

Urban Development Institute of Australia (SA)

Australian Building & Construction Dispute Resolution Service

Adjudicate Today

 

Anonymous comment received via the feedback page on the SASBC website

The comment in paragraph 24 of the Moss Report is understated. It is common knowledge throughout the industry that a builder will "Black Ban" any subcontractor who attempts to make a claim under the Act.

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